As China continues to test its central bank digital currency (CBDC), there are now a few more details about it and how the test is going. These details are directly from Suzhou, one of the four cities in the country where the currency is currently being tested. The currency will be tested among workers, via transport subsidies.
Specifically in the Xiangcheng District of Suzhou, workers employed at several agencies and institutions will begin to receive half of their transport subsidies in the CBDC. Already, a few of these institutions have been asked to be a part of this by signing a digital currency distribution agreement. They have also been asked to make sure their workers have a digital wallet.
Reports suggest that the CBDC will be delivered in two tiers, with commercial banks serving as middlemen between the central bank and the Chinese public. Mobile payments service Alipay is also named as one of the contributors to the research and development of the CBDC, including its technology and distribution.
Furthermore, the institutions that are a part of the testing must choose one of China’s four major state-owned banks. They include the Agricultural Bank of China, the Industrial and Commercial Bank of China, the China Construction Bank, and the Bank of China.
Image Credits: Pixabay
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